Pallone decries blacklist, says US loss will be EU's gain

Democratic Congressman Frank Pallone has
urged Secretary of State Madeleine Albright and Commerce Secretary
William M Daley to reconsider the United States' decision
blacklisting various Indian public and private companies and denial
of support of international financial institutions to India.

In an identical letter to the two members of the Clinton cabinet,
he expressed ''serious concern'' at the two steps which he said,
''combine to create a worsening atmosphere in US-India relations
and threaten the growing economic ties between the two countries.''

The Clinton administration took these measures last week in
pursuance of the Glenn Amendment to punish India for its May nuclear tests.

In the letter, copies of which were released in Washington last night, the
Congressman expressed his willingness to work with the
administration to address problems concerning these two actions and
adopting policies that would promote a more favourable climate in
US-India ties on both the diplomatic and political levels.

He also signalled his desire to work with the Indian-American
community in the United States to press the administration to
consider policy changes.

Pallone drew the Cabinet members' attention to the powers that
Congress last month gave to US President Bill Clinton to waive
sanctions. ''We believed, as did the administration, that the
sanctions were not an effective way for the US to achieve our
non-proliferation and other goals,'' he added.

''Instead, the sanctions only served to set back our growing
commercial ties with South Asia, while limiting the ability of the
US to play a constructive role in the ongoing process of fostering
economic progress in this important region. Thus, we welcomed the
decision by the president to lift sanctions,'' he added.

Pallone said, ''Unfortunately, the decision to relax
the sanctions was accompanied by a decision to support lending by
IFIs for non-basic humanitarian needs for Pakistan -- but not for
India.''

''This decision essentially has the effect of either expressing
favouritism of disfavour towards India, or both,'' he added.

The Congressman sought details from the administration about the
conditions that had been attached to the granting of this
''preferable'' treatment to Pakistan in terms of a commitment to
future reforms.

''Following on the heels of this action, the commerce
department's list of Indian private and public entities would have
the effect of punishing Indian organisations with no direct role in
nuclear or missile technology, as well as US firms that have ties
with them,'' he added.

Pallone said, ''I believe that the administration had cast too
wide a net in listing entities, including private research
institutions, that do not threaten US companies in India.
America's loss could well be the European Union's or Japan's gain.''

He said the administration shared the goals of improved
diplomatic, political and strategic relations with the nations of
South Asia as well as enhanced opportunities for trade and investment
for the US private sector.

''Hope that we can work together to develop a common approach to
addressing these issues,'' he added.